SubscribeAll Posts Tagged With: "economic effects"
Will Obama’s Toxic-Asset Plan Help Banks Lend Again?
With every proposed financial fix-up plan for the U.S. banking system, there’s always been one major sticking point: The logjam of hard-to-price – and even “toxic” – assets clogging the balance sheets of banks, investment houses or any other type of company with an involvement in the financial-services sector.
The Barack Obama administration yesterday (Monday) unveiled a detailed strategy for attacking that problem. The plan, which fleshes out a very broad strategy sketched out on Feb. 10, relies on a joint effort with private investors to rid banks of up to $1 trillion worth of the toxic…
24Mar2009 | Money Morning | 0 comments | ContinuedGovernment Debt Bubble Will Burst
We believe that the objective of the Fed was two-fold; firstly, to put downward pressure on the long-term interest rates and stimulate the economy by squashing their recent gains, and secondly, to fill in the gap between a very sizeable increase in government spending and the demand for Treasuries at a time when traditional foreign investors are reducing their exposure to the dollar. They no longer have the same export surpluses they need to invest domestically and support their own economies, and are truly starting to question whether the U.S. government will…
24Mar2009 | The Real Deal | 0 comments | Continued
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